Logical Wisdom

 The true wisdom leads to putting more thought into things and searching for flaws in decisions and that widens the possibility of coming up with alternative decisions.

One significant effect of digitization is increased velocity, complexity, unpredictability, and a need for a faster response to changes in business and industry based on effective and efficient decision making. 

There are many variables in complex decision making, there are tradeoffs you have to leverage, and there is no magic formula to follow. There are various approaches to decision logic, ranging from objective and rational to subjective and context-dependent. It's important to walk through “learn, ask, collect, articulate, fill out, perceive” stages for digital decision-making. These include:

Objective Rational Decision Making: Assumes individuals make the same decisions given the same information and preferences.

Logic of Appropriateness: This approach involves matching situations, roles, and rules, focusing on social norms and what is deemed right rather than cost-benefit calculations. It emphasizes following rules perceived as natural, valid, and legitimate within a political community.

Fuzzy Logic: It's used in technical applications to enable machines to make decisions based on a human operator's practical knowledge. It uses linguistic rules like "if [present conditions], then [action to be taken]" and represents ambiguous terms as fuzzy sets.

Decision Analysis: It involves choosing optimal decisions in the face of uncertainty using probabilities for possible future events. It uses methods like expected value computation and decision trees for sequential decision-making.

Machine Learning: It enables computers to learn autonomously by identifying patterns and making data-based decisions, particularly useful where detailed instructions for every scenario are impractical. Tools such as neural networks and genetic algorithms are used to improve algorithms over time.

The true wisdom leads to putting more thought into things and searching for flaws in decisions and that widens the possibility of coming up with alternative decisions. It’s crucial to take logical steps in achieving decision maturity.

Posted in: Business Intelligence,Decision Making,Innovation